Recent developments in the European response to the ongoing conflict in Ukraine have highlighted the complexities surrounding energy trade, particularly as it pertains to Russian oil. In mid-May, the UK government sanctioned the Azerbaijani state-owned tanker Zangezur, part of a broader crackdown on over 100 vessels linked to the shadow transport of Russian oil. The sanctions included asset freezes on key directors of the oil trading company Coral Energy Group, which has recently rebranded as 2Rivers Group. These sanctions are significant not only because of their immediate economic implications but also due to their potential political ramifications in a region where energy independence remains a top priority.

The sanctions targeted prominent figures within 2Rivers, including Ahmed Karimov and Tahir Garaev, both of whom have been accused of supporting Russia's heavily sanctioned energy sector. This marks the second wave of sanctions against the company, following initial measures imposed in December 2024. The actions taken by the UK reflect ongoing concerns over Russia's ability to circumvent sanctions through networks based in countries like Azerbaijan. Despite the Azerbaijani government's silence on the matter, it is clear that its involvement as a transit hub for Russian oil is receiving increasing scrutiny from Western powers.

Political analyst Elman Fattah has pointed out that while Europe has ceased direct trade with Russia, it has not entirely weaned itself off Russian oil. Azerbaijan has emerged as a critical intermediary, often engaged in agreements that seemingly allow European nations to sidestep ethical dilemmas while securing energy supplies. "When they signed those deals—which involved buying energy in volumes beyond Azerbaijan’s actual capacity—they effectively signalled a willingness to look the other way," Fattah noted. His insights suggest that as Europe grapples with these compromises, a more principled stance may be gradually taking shape, particularly as Azerbaijan's domestic governance and foreign policy draw increasing concern from the West.

Concurrently, the European Union is strengthening its sanctions against Russia. As of May 20, 2025, a comprehensive package targeting over 130 entities and individuals was adopted, focusing on shadow oil fleets, chemical weapons, and human rights abuses. This includes blacklisting 189 vessels, largely oil tankers, which heightens the pressure on Russia's maritime oil exports. The EU's collaborative efforts with nations that provide flags of convenience signal a significant escalation in the strategy against Russian sanctions evasion, even as Azerbaijan remains entrenched in the network facilitating these activities.

The Azerbaijan Caspian Shipping Company, which co-owns the tanker Zangezur, plays a pivotal role in the region's shipping activities. Operating an extensive fleet of tankers and cargo vessels, ASCO is a key player in both regional and international shipping. Its involvement in the transport of energy resources places it at a crossroads between economic opportunity and geopolitical scrutiny.

The ongoing sanctions, while targeting specific actors, also serve as a litmus test for Europe's ethical approach to energy sourcing. As Fattah suggests, there appears to be a gradual shift towards prioritising principles over prospects for energy security. This moral quandary—and the economic stakes involved—will likely continue to challenge not only Azerbaijan's position in the regional energy landscape but also the broader geopolitical dynamics at play between Europe and Russia.

As this situation unfolds, the implications for Azerbaijan, Europe, and indeed the global oil market remain yet to be fully realised, compelling further examination of how international relations are reshaped in light of energy dependencies and ethical governance.

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Source: Noah Wire Services